The 7 SECRETS to select the right coverage for you 

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1. Collect Automatic Savings with Reduced MCCA Vehicle Fee

The Michigan Catastrophic Claims Association pays for PIP Medical benefits that exceed $580,000 during the lifetime of the claimant from injuries sustained in an auto-related accident.  The 2019-2020 annual assessment is $220 per vehicle.  Effective July 2, 2020 through June 30, 2021:

Unlimited PIP:  Reduced from $220 per vehicle to $100

All Other Options:  Reduced from $220 per vehicle to $0

2. Studies show 99% of PIP Medical Claims are under $500,000

  1. Studies also show 2% of PIP Medical Claims go over the $250,000 threshold
  2. Claims that do go over $500,000, do so significantly
  3. Average Michigan PIP claim is about $34,000

3. Considering Attendant Care and Excess Coverage Option

Attendant Care is part of the PIP Medical benefits and is defined as, “Allowable expenses consisting of all reasonable charges incurred for reasonably necessary products, services and accommodations for an injured person’s care, recovery or rehabilitation.”

In severe cases, an injured party may need assistance with basic needs such as bathing, dressing and feeding.  Depending on the injury, this care may be needed for several months, or even leave one permanently disabled and Attendant Care would address these needs. 

This is an important consideration in selecting your PIP Medical Benefit.  A new endorsement is now available called “Excess Attendant Care Coverage.”  A policyholder with Unlimited PIP will not need this (as you already have Unlimited PIP) and a policyholder who chooses to opt out of PIP cannot purchase.

4. Opt-out Option with Other Qualified Health Coverage

No-Fault Reform provides options to completely opt-out of PIP Medical coverage if you have “Qualified Health Coverage” as defined below:

  • Health and accident coverage that does not exclude or limit coverage for injuries related to auto accidents and has an annual individual deductible of $6,000 or less; OR
  • Coverage under both Medicare Parts A and B (for those 65 years and older)

Medicaid and health care sharing ministries are examples of coverages that are NOT considered qualified health coverage. 

Typically, employers that provide a “self-funded plan” will exclude coverage for injuries related to auto accidents and thus NOT considered qualified health coverage

5. Resident Relative Definition 

The order of determining who will pay for a no-fault claim – called the “order of priority” – has changed in some cases.  Relatives who do not reside in the household of the named insured unless they are temporarily away at school. These relatives (such as your children) would need to have their own insurance policy, even if they are driving a car you own. 


Your adult child driving a vehicle titled in your name but has established residency elsewhere.  This could be a college student that has signed an annual apartment lease or a young adult who took a new job in a different city. 

You’re living with someone (who is not a spouse or relative) who does not have his/her own insurance, but drives a vehicle titled in your name. 

6. The Mini-Tort Dynamic

No-Fault Reform is also bringing changes to “Mini-Tort,” which is the maximum recovery amount for damages to a motor vehicle caused by a negligent driver.  The amount is changing from $1,000 to $3,000.  Given this change, the following are of greater consideration:

  • Adding the Endorsement for Mini-Tort Liability to your policy is now more important. With this endorsement, your insurance company pays up to $3,000 for damage that you cause when deemed at-fault. 
  • Your consideration of insuring a lower value vehicle on your policy for collision may now be different since you may re-coup $3,000 from an at-fault party. You should consider however that there needs to be an at-fault party to collect damages, for example in the event of a hit and run. 

7. Guard Against Gaps and Increased Lawsuit Frequency 

Many drivers will be selecting lower limits or opting out of Personal Injury Protection.  Due to this, motor Vehicle owners and operators will be liable for more damages than they were before.  Here are a few additional considerations:

Bodily Injury Liability Limits:  The new default is $250,000 per person and $500,000 per occurrence.  For a relatively small additional premium, you can increase to $500,000 per person or in some cases $1,000,000. 

Uninsured/Underinsured Liability Limits:  You are typically eligible to increase this limit to the amount of your Bodily Injury Limits.

Motorcyclists:  Due to changes in the “Order or Priority,” consider keeping Unlimited PIP Medical Benefits on your Personal Auto policy.

A Personal Umbrella Liability is recommended by most Financial Advisors and provides coverage above your base liability limits for your Automobile, Home and other eligible personal liability exposures.  The coverage limits begin with an additional $1,000,000 of coverage and premium is typically $200 annually.